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FCA retirement income market data
The FCA released its retirement income data for 2022/23 on Tuesday 16th April.
| 2021/22 | 2022/23 | |||
|---|---|---|---|---|
| Number of plans | Monetary value (£000) | Number of plans | Monetary value (£000) | |
| Total pots accessed for first time | 705,661 | 45,638,188 | 739,535 | 43,199,189 |
| Annuities purchased | 60,574 | 5,153,150 | 59,163 | 4,060,947 |
| New drawdown policies entered into and not fully withdrawn | 205,641 | 31,794,619 | 218,074 | 29,867,353 |
| Pots where first partial UFPLS payment taken and not fully withdrawn | 36,271 | 3,693,212 | 41,571 | 4,002,707 |
| Full cash withdrawals from pots being accessed for first time* | 395,235 | 4,997,207 | 420,727 | 5,268,182 |
A summary of the data shows:
- Slightly more pots (4.9% higher) were accessed for the first time in 2022/23 than in 2021/22 (739,535 vs 705,661).
- However the monetary value was down, suggesting more people took out slightly lower value withdrawals.
- The percentage of customers using the different solutions has remained broadly constant.
- In monetary terms the majority of funds go into drawdown.
- In customer numbers most take full cash withdrawals.
- Sales of annuities fell slightly, which is probably a surprise given rates have generally been good.
- The number of DB transfers continued to fall.
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